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OPERATION OF FEDERAL RESERVE BANK OF CHICAGO 1924 SEVENTH FEDERAL RESERVE DISTRICT TENTH ANNUAL REPORT TO THE FEDERAL RESERVE BOARD FEDERAL RESERVE BANK OF CHICAGO CHICAGO, January 15, 1925 SIR: In compliance with jour letter of December 18, 1924, I have the honor to submit herewith the tenth annual report of the Federal Reserve Bank of Chicago, covering the year 1921. Respectfully, W. A. HEATH, Chairman and Federal Reserve Agent. HON. D. R. CRISSINGER, Governor, Federal Reserve Board, Washington, D. C. FEDERAL RESERVE BANK OF CHTCAGO Comparative Statement of Condition IN THOUSANDS OF DOLLARS RESOURCES Gold with Federal reserve agent Gold redemption fund with United States Treasury Gold held exclusively against Federal reserve notes.. Gold settlement fund with Federal Reserve Board Gold and gold certificates held by bank Total gold reserves Reserves other than gold Total reserves Non-reserve cash Bills discounted: Secured by United States Government obligations... Other bills discounted Total bills discounted Bills bought in open market United States Government securities: Bonds Treasury notes Certificates of indebtedness ^ _ Total United States Government securities Foreign Loans on gold ,. Total Earning Assets 5 per cent redemption fund—Federal Reserve Bank notes Uncollected items Bank premises All other resources Total resources Dec. 31, 1924 Dec. 31, 1923 Dec. 30, 1922 165,909 2,498 384 917 4,196 410,108 2,199 168,407 110,989 87,980 389,113 106,900 49,091 412,307 77.261 50,981 367,376 15.576 545,104 8,286 540,549 21,701 382,952 553,390 562,253 9,266 7,500 19 379 18,445 48,866 46,468 24,875 48,996 37,824 33,882 95,334 42,437 73,871 14,565 19,494 46,556 14,320 4,425 4,868 1,464 4.426 #10,855 47,552 80,370 894 10,757 62,833 152,970 148,528 151,269 81,588 8,099 1,556 66,451 8.264 240 636 431 784.373 821.702 665 98,525 702 LIABILITIES Federal reserve notes in actual circulation Deposits: Member bank—reserve account Government Other deposits Total deposits Deferred availability items Capital paid in Surplus All other liabilities Total liabilities Ratio of total reserves to deposit and Federal reserve note liabilities combined , Contingent liabi'ity on bills purchased for foreign correspondents *Not shown separately prior to 1923. # Including Victory notes. 196,529 406,901 420,506 312,395 6,173 1,616 268,212 2,745 1,052 282,901 1.294 2,659 320,184 72,786 15,172 30,425 1,335 272,009 58,611 15,179 30 426 1,247 286,854 68.248 14,772 30,398 924 636.431 784 373 821.702 74.1% 81.5% 79.5% 6,360 2,640 4,093 OPERATION OF THE FEDERAL RESERVE BANK OF CHICAGO IN 1924 O PERATIONS of the Federal Reserve Bank of Chicago during 1924 have been influenced by the improved position of member banks in the district, a development enabling them to meet a large proportion of the, demand for accommodation from their customers with lessened recourse to the Federal Reserve bank. Business and industry in the Seventh district have been on a generally lower level than during the preceding year; toward the close, however, better sentiment on all sides gave rise to a slight acceleration of enterprise in many lines. Agriculture in the greater part of the district received a severe blow in the poor corn crop, a loss partially offset by better yields and prices for other grains and crops, but nevertheless constituting a distinct handicap to agricultural recovery. Because of favorable market conditions for hogs and carry-over of some crops from the preceding year, however, many banks were enabled to pay off their indebtedness entirely and others to make substantial reductions. During the final weeks of the year liquidation of agricultural credits was less rapid, the result of heavy shipments of light-weight hogs early in the fall due to lack of feed, as well as of the inferior corn crop as shown by the final figures. Departments of the Federal Reserve Bank of Chicago as a whole have functioned during the year with reduced personnel in response to generally lessened requirements, with no loss of efficiency in those departments where increased volume of operations was shown over that of the preceding year. Financial Results of Operations—The decreased volume of Federal Reserve credit employed by member banks during 1924 is shown by the total of bills discounted on December 31, amounting to $37,823,746 as against $95,334,183 on the corresponding date of the preceding year. Total bills on hand at the close of 1924 aggregated $71,705,351 compared with $137,771,447 on December 31, 1923. Total cash reserves dropped from $553,389,771 to $382,951,550 between these dates. Deposits expanded throughout the year, the total of $320;183,677 on December 31, 1924, comparing with $272,009,222 a year ago. TENTH ANNUAL REPORT Earnings and Expenses 1924 EARNINGS Discounted bills Purchased bills United States securities Deficient reserve penalties. Miscellaneous Total earnings. $2,044,407 705,723 2,121,708 39,910 290,421 1923 1922 53,872,139 $3,862,291 547,339 1,420,395 1,049,666 2,081,340 49,761 37,573 208,132 131,586 $5,202,169 $6.511.359 $6 748.863 CURRENT EXPENSES Salaries: Bank officers Clerical staff Special officers and watchmen All other Governors' conferences Federal reserve agents' conferences Federal Advisory Council Directors' meetings # Traveling expenses Assessments for Federal Reserve Board expenses Legal fees Insurance (other than on currency and security shipments) : Insurance on currency and security shipments Taxes on banking house Light, heat, and power Repairs and alterations, banking house Rent Office and other supplies Printing and stationery Telephone Telegraph Postage Expressage Federal Reserve Currency: Original cost, including shipping charges Cost of redemption, including shipping charges. Taxes on Federal reserve bank-note circulation All other expenses Total current exnen«es Current net earnings. Total additions Total deductions 39,714 58,859 230,166 41,240 17,941 48,142 76,924 81,128 26.675 59,305 213,546 50,584 38,601 56,083 230,455 49,602 88,308 42,176 144,239 66,944 112,922 30,164 62,125 207,994) 55,244) 210,993 57,752 2,006 110,094 ! 367,156 1,907,058 155,333 236,665 309 348 992 8,221 •42.083 98,307 1,387 67,400 48,424 205,729 83,090 109,172 31,328 62,168 245,014 95,378 82,631 33,425 198,439 $3,946.-^36 $4,373,024 $4,080,057 1924 1923 1922 56.511,359 $6,748,863 4,373.024 4,080,057 =:>.668.806 $2,138,335 $1,255.733 $5,202,169 3,946.436 Additions to current net earnings: Withdrawn from reserve for— Depreciation on United States bonds. Probable losses All other Deduction from current net earnings: Depreciation allowances on bank premises Reserve for probable losses Reserve for depreciation on United States bonds Furniture and equipment All other ; 332,875 1,947,951 108,696 344,363 711 363 1,007 9,094 31,780 97,426 225,985 36,556 PROFIT AND LOSS ACCOUNT Earnings Current expenses 347,478 1,818,716 102,906 271,471 383 302 914 8,441 26,222 91,183 4,711 29,946 $ 57.641 427,465 86,913 40,679 Tl,957 40.679 $ 41,903 $ 577.019 165,197 $ 451,044 $1,400,000 363,586 181,674 12.822 11,818 166,662 238.923 15,778 20,591 196,687 $ 387.289 $1.001 883 tl.835 610 Net deductions from current net earnings $ 346.610 $ 959.980 * 1.263.591 Net earnings available for dividends, surplus, and franchise tax $ 909,123 $1,178 355 $1,405 215 Dividends paid Transferred to surplus account Franchise tax paid United States Government. $ 909,123 904,371 27,398 246.586 876.203 -657,389 1.186,301 # Other than those connected with governors' and agents' conferences and meetings of directors and of the advisory council. * After charging surplus and crediting franchise tax with $710,190 paid as an additional franchise tax for 1921. Amounts transferred to surplus and paid as a franchise tax out of earnings for 1922 were $52,901 and $476,111, respectively. FEDERAL RESERVE BANK OF CHICAGO The movement of the principal items of resources and liabilities from 1920 to 1924, inclusive, is shown in the charts on page 8. After deduction from earnings for depreciation and other contingencies, dividends to the amount of $909,122.86 were paid, covering the period from January 1 to December 31, 1924. No payment of franchise tax was made, nor any transfer to surplus. Net earnings in 1923 were $1,178,354.82. Discount Operations in 1924—The loan and discount operations of the Federal Reserve Bank of Chicago during the year 1924 reflect a continual liquidation in commercial, industrial, and agricultural lines. Easier conditions in commerce and industry resulted in an increase of deposits in member banks and a slackening of demand for loans from the Federal Reserve bank which enabled the banks in the larger centers to eliminate entirely their borrowings. The easing tendency in the money market was reflected in June by the reduction of our rediscount rate from 4^2 to 4 per cent. Detailed statistics are shown in the Annual Report of the Federal Reserve Board. Loans which aggregated $104,800,000 on January 2, the high point of the year, on December 31 showed an aggregate of $37,824,000, and on October 15 had stood at $27,103,000, the low point in 1924. Member banks to the number of 922 were accommodated in 1924, as against 9'73 the preceding year. The aggregate of loans in 1924 was $1,035,261,000, whereas in 1923 the corresponding figure had been $2,508,082,000. Collateral and Safekeeping Operations—The amount of securities held as collateral showed a declining trend in 1924, the figure of $90,734,000 on January 2 comparing with $75,854,000 on December 31. The low point of the year was shown on October 15 with $65,444,000 and the high on January 3 when securities held as collateral aggregated $97,283,000. Member banks numbering 646 or 45 per cent of the membership of the district utilized the safekeeping services of the bank in 1924. The peak of the volume of securities entrusted for safekeeping was shown on November 25, with a figure of $140,140,000 and the low point on March 26, . with $99,397,000. Investments—The year 1924 showed less activity in the Investment Department than 1923, also a considerably reduced operating cost. Holdings of bankers' acceptances fluctuated from a high point of $41,504,943 on January 9 to a low point of $1,259,750 on August 13, rising in the later months of the year, the balance on hand December 31 amounting to $33,882,605. Acceptances purchased during the year amounted to $164,045,000, as against $265,360,000 the previous year, those bought under repurchase agreement aggregating $27,039,000 for TENTH ANNUAL REPORT Comparative Volume of Operations in Principal Departments 1924, 1923, and 1922 NUMBER OF PIECES HANDLED Bills discounted: Applications Notes discounted Bills purchased in open market for own account Currency received and counted Coin received and counted Checks handled Collection items handled: United States Government coupons paid All other United States securities—issues, redemptions, and exchanges by Fiscal Agency department Transfers of funds Envelopes received and dispatched 1923 1924 1922 19,391 92,140 21,196 94,971 29.349 140,994 10,135 282,779,000 208,091,000 97,084,000 20,241 268,485,000 206,613,000' 88,649,000 20,326 200,648,000 165,914,000 78,509,000 8,063,000 489,000 10,459,000 442,000 13,898,000 378,000 #22,041,000 246,000 7,460,000 **4.054,000 214,000 *6,148,000 2,634,000 263,000 5,279,000 AMOUNTS HANDLED Bills discounted $1,035,261,000 $2,508,082,000 $1,581,004,000 Bills purchased in open market for own account 164,045,000 265,360,000 253,464.000 Currency received and counted 1,564,021,000 1,501,901,000 1,172,217,000 Coin received and counted 29,234,000 28,843,000 15,694,000 Checks handled 23,280,863,000 23,074,243,000 14,661,227,000 Collection items handled: United States Government coupons paid 82,348,000 89,818,000 89,443,000 All other 618,147,000 763,273,000 605,026,000 United States securities—issues, redemptions, and exchanges by Fiscal Agency department 831,013,000 1,116,402,000 1,934,493,000 Transfers of funds 18,833,433.000 15,588,668.000 13,904.999.000 •Partly estimated. # Large increase due to redemption of war savings securities which matured January 1 1923. **In this figure, war savings and thrift stamps were counted according to the number of certificates to which attached, as the number of stamps is not available. MOVEMENT OF RESOURCES AND LIABILITIES FEDERAL RESERVE BANK OF CHICAGO—1920 TO 1924, INCLUSIVE MILLIONS OF 0OLLAR5 600I RESOURCES LIABILITIES MILLIONS DF DOLLARS 600 100 OJ US SECURITIES L 1920 1921 1923 1924 FEDERAL RESERVE BANK OF CHICAGO the year just closed, a decrease of $37,314,000 from operations in 1923; sales under repurchase agreement naturally showed a corresponding falling off in amount. Transactions, including bills taken under repurchase agreement, indicate that the number of acceptances handled in 1924 amounted to 10,135 pieces, as against 2,0,241 for 1923. Holdings of United States securities (including those held under agreement) reached a high point of $87,680,300 on November 13, having risen to this figure from a low point of $10,313,700 on January 2. At the close of the year these holdings were $80,370,000. There was a considerable decrease in the number of transactions based on repurchase agreements, and also in the number of Certificates of Indebtedness and Treasury Notes bought and sold. However, there were 1,621 more transactions involving the purchase and sale of bonds than in the previous twelve months. Low money rates outside of the Federal Reserve bank account for the decrease in transactions under agreement and the low rates available on Certificates and Notes made them unattractive to small purchasers, as evidenced by the numerical decrease in transactions handled, with a material increase in the dollar amount. C O M P A R A T I V E TABLE OF GOVERNMENT SECURITY TRANSACTIONS 1923, AND 1922—AMOUNTS IN T H O U S A N D S OF DOLLARS 1924 Number of Transactions 1924, 1922 1923 Amount Number of Transactions Amount 264 462 173,615 92,309 1,006 813 76,505 73 033 684 523 171,252 88,345 Number of Transactions Amount Certificates of Indebtedness and Treasury Notes: Market Purchases... Market Sales Bought with Agreement Sold under Agreement U. S. Bonds: Bought Sold 410 52,293 2,142 198,472 2,342 243,996 401 56,292 2,250 21L317 1,867 237,697 2,989 11,698 3,356 9,710 43,015 23,840 1,938 20,940 92,693 83,002 Totals 16,224 61,015 37,845 473,369 19,277 626,232 28,294 916,985 NOTE.—Includes transactions for the account of member and other banks, but excludes temporary Treasury Certificates purchased from the Treasury Department. Deposit and Federal Reserve Note Liabilities; Reserve Position—As a consequence of the policy of paying out gold notes, the volume of Federal Reserve notes in circulation during 1924, showed a steady decline, the figure of $404,255,000 shown on January 2 constituting the high point for the entire year, and December 31, with $196,529,000, marking the low point. The weekly changes in Federal Reserve note circulation are shown in the Annual Report of the Federal Reserve Board. Total deposits were on -a generally higher level than in 1923. The date of highest total deposits in 1924 was September 10 when $331,918,000 was shown. At the beginning of the year, January 2, they aggregated $291,118,000 and $320,184,000 on December 31. 9 TENTH ANNUAL REPORT After the middle of February, as was the case in 1923, total cash reserves showed a downward trend, the $382,95^,000 on December 31 comparing with $560,791,000 on January 2. The peak, or $573,345,000, occurred on February 13. The reserve ratio fluctuated considerably in 1924, touching a high of 88.8 on February 6 and 13 compared with 80.6 at the opening of the year. Following the peak, the trend was downward the remainder of the year, save for a slight upward movement in the summer months. On December 31 the ratio stood at 74.1 per cent. Membership—Five state banks in the Seventh district, Farmers Savings Bank, Palmer, Iowa; Home State Bank for Savings, Grand Rapids, Michigan; State Savings Bank, Marlette, Michigan; Citizens Savings Bank, Mt. Clemens, Michigan; and Citizens State Savings Bank, New Baltimore, Michigan, were admitted to the System in 1924 and sixteen withdrew. Four of these left the System on six months' notice, seven were closed, two were absorbed by national banks, one was consolidated with a national bank, one was absorbed by a member state bank, and one was converted to a national bank; this resulted in a net loss of eleven state bank members in the district during 1924. Twelve national banks, including the state bank member converted into a national bank, were admitted, and seventeen withdrew, three by closing, and the others by absorption, consolidation or succession, so that national bank membership in the district was reduced by five during the year. Comparative statistics of membership at the close of 1922, 1923, and 1924, are given: December 31 Nat'l Iowa Michigan Wisconsin Totals 331 189 346 83 110 1.059 State 67 18 100 154 21 .^0 1924 December 31, 1923 December 31, 1922 Total Nat'l State Total 398 207 446 237 131 336 191 348 82 107 68 19 107 153 24 404 210 455 235 131 333 192 351 81 107 73 20 108 153 25 406 212 459 234 132 1,419 1.064 371 1 435 379 1,443 Total Nat'l State Twelve national banks as follows were authorized and approved by the Federal Reserve Board to exercise fiduciary powers: Austin National Bank, Chicago, 111. Lincoln National Bank, Fort Wayne, Ind. First Merchants National Bank, LaFayette, Ind. Lowell National Bank, Lowell, Ind. First National Bank, Montezuma, Ind. First National Bank, Noblesville, Ind. Farmers National Bank, Remington, Ind. American National Bank, Rushville, Ind. McKeen National Bank, Terre Haute, Ind. Commercial National Bank, Charles City, la. First National Bank, Oelwein, la. First National Bank, Ann Arbor, Mich. 10 FEDERAL RESERVE BANK OF CHICAGO One national bank member was authorized and approved by the Federal Reserve Board to accept 100 per cent of its combined capital and surplus under Section 13 of the Federal Reserve Act. Bank Examinations and Relations—The work of the Department of Bank Examination continued in 1924 as in former years. Special analysis of conditions of banks was made based on comparative figures tabulated for a period of years, and information collected in connection therewith has proved to be of special interest and value. The work of the field force of examiners was confined largely to co-operative credit examinations made in conjunction with the supervising authority. The co-operation of the Chief National Bank Examiner and the several State Banking Departments, where special conditions had to be met, has been highly satisfactory. Continuing the policy of preceding years, representatives of the Bank Relations Department in 1924 made 2,181 visits to member and 1,114 to non-memher banks for the purpose of establishing a closer contact between them and the Federal Reserve bank. A special feature of the work was the Federal Reserve System exhibit during the convention of the American Bankers' Association in Chicago, September 29 to October 3, at which time approximately 2,000 bankers visited the bank. Fiscal Agency Functions'—While the fiscal agency work performed for the United States Treasury has diminished very materially during the past twelve months, this bank has continued to take an active part in Government financing. During the year it distributed $127,841,000 of Treasury Certificates of Indebtedness and $85,563,300 of Treasury Bonds of 1944-54. In the performance of its fiscal agency functions, there were surrendered to the bank during 1924 for exchange, conversion, and redemption, Government securities amounting to $615,072,224 as represented by 2,571,248 pieces. Against these surrenders there were delivered 254,112 pieces aggregating $481,319,460 pieces. The banks and brokers dealing in United States Treasury Certificates of Indebtedness and short-term notes continue to find the telegraphic transfer of these securities through the Office of the Commissioner of Public Debt a great convenience, and during the year past, the bank accepted for telegraphic transfer $271,488,500 and delivered $239,203,400 of Government securities against receipts by other Federal Reserve banks. The work for the War Finance Corporation is practically completed. While no new loans were made, 114 renewals were effected aggregating $2,339,645, and substitutions of collateral amounted to $10,031,160. Notwithstanding the fact that the sale of Treasury Savings Certificates was restricted during the early part of the year and discontinued entirely on June 30 sales through this bank amounted to $2,536,125. War Savings, Thrift, and Treasury Savings Stamps to the number of 1,435,082 were redeemed during the year aggregating $6,297,190. 11 TENTH ANNUAL REPORT Gold Settlement Fund—The volume of balances settled through the Gold Settlement Fund expanded in 1924. Receipts from other Federal Reserve banks totaled $14,189,215,000, a gain of $1,260,742,000 over the corresponding figure for 1923. Payments to other Federal Reserve banks aggregated $14,365,047,000 compared with $12,936,848,000 the preceding year. A net loss of $175,832,000, therefore, accrued from transactions between this district and other Federal Reserve districts, as against a net loss of $8,375,000 in 1923. The weekly figures of these transactions are shown in the Annual Report of the Federal Reserve Board. The Gold Settlement Fund increased from $106,900,072 on December 31, 1923, to $110,988,942 at the close of 1924, as the result of these transactions and a large volume of deposits. Clearings and Collections—The total number of checks handled by the head office and the Detroit Branch combined during the year 1924, shows an increase of 9.5 per cent over the year 1923. The number of items on Chicago and Detroit banks increased 16.5 per cent, those on banks outside of Chicago and Detroit 10.2 per cent, and Government checks 2.1 per cent. The total number of items handled during the year 1924 by both offices was 97,084,000, amounting to $23,280,863,000. The total number of items handled during the year 1923, by both offices, was 88,649,000. amounting to $23,074,243,000. The past year has shown a very satisfactory increase in the efficiency of the Check Department of this bank. There was a reduction at the head office of twenty-eight persons or 7 per cent in the daily average number of employees from 1923 and the total number of items handled increased 8.1 per cent over the total number of items handled during the year 1923. A total of 489,474 non-cash collection items were handled in 1924 by the bank, including the Detroit Branch, with an aggregate value of $618,147,000, a gain in number of items of 10.7 per cent over the 1923 figures, which showed 442,271 items with an aggregate value of $763,272,927. In 1924 the parent bank handled 408,241 items with a total value of $519,428,657, and the Detroit Branch 81,233, with a total value of $98,718,668. There were also protested notes, drafts, and checks to the number of 7.129 by the Chicago office and 6,918 by the Detroit Branch. A total of $14,157,668,000 was transferred over the leased wires in 1924, covering 139,280 transactions, and all other transfers aggregated $4,675,765,000, involving 123,496, resulting in a total of 262,776 compared with 12 FEDERAL RESERVE BANK OF CHICAGO 246,453 in 1923. The aggregate of $18,833,433,000 transferred in 1924 compares with $15,588,668,000 the preceding year. Cash and Currency Operations—As in previous years, Cash and Currency operations continued to increase, 1924 showing the largest receipts and disbursements of cash, notwithstanding the fact that there was a reduction of $207,726,125 in the net circulation of Federal Reserve notes outstanding, from a high of $404,254,800 on January 2 to $196,528,675 on December 31. This reduction was due principally to the paying out of $704,320,000 in gold certificates, as compared with only $59,193,000 in 1923, Currency received amounted to $1,569,248,000 as compared with $1,489,811,000 for the preceding year. Payments amounted to $1,040,423,000, as against $999,471,000 in 1923. Shipments of currency and coin to and from country banks numbered 88,870 compared with 84,571 during 1923. Internal Organization—George M. Reynolds, Class A Director, and August H. Vogel, Class B Director, whose terms expired at the end of 1924, were re-elected. William A. Heath, Class C Director, whose term also expired at the end of 1924, was re-appointed by the Federal Reserve Board. The Directors for the year 1925 will consist of the following: CLASS A—Elbert L. Johnson, Waterloo, Iowa; Charles H. McNider, Mason City, Iowa; George M. Reynolds, Chicago, Illinois. CLASS B—Stanford T. Crapo, Detroit, Michigan; Robert Mueller, Decatur, Illinois; August H. Vogel, Milwaukee, Wisconsin. CLASS C—Frank C. Ball, Muncie, Indiana; James Simpson, Chicago, Illinois; William A. Heath, Evanston, Illinois. The Federal Reserve Board again designated William A. Heath as Chairman of the Board of Directors and Federal Reserve Agent for 1925, and James Simpson was designated as Deputy Chairman. The Executive Committee for 1924 consisted of James B. McDougal, Governor, William A. Heath, Federal Reserve Agent, Charles H. McNider, George M. Reynolds, James Simpson, and August H. Vogel. The Membership Committee was composed of William A. Heath, Federal Reserve Agent, James B. McDougal, Governor, and August H. Vogel. These Committees will serve the Board of Directors in 1925 as constituted during the past year. There were two resignations in the official staff during 1924: Walter A. Hanson, Manager, Accounting Department, resigned in October, and Charles G. Rutledge, Acting Assistant Federal Reserve Agent, in December. No appointments were made to fill these vacancies. 13 TENTH -ANNUAL REPORT Following is a comparison of the total number of employees exclusive of officers at the head office: December 31, 1923 December 31, 1924 Reduction 1,569 1,246 323 The Detroit Branch Board of Directors for the year 1925 will consist of the following: N. P. Hull, Lansing, Michigan; Charles H. Hodges, Detroit, Michigan; Julius Haass, Detroit, Michigan; John W. Staley, Detroit, Michigan; W. R. Cation, Detroit, Michigan; Harry H. Bassett, Flint, Michigan; and George B. Morley, Saginaw, Michigan. There was no change in the official staff of the» Detroit Branch during the year 1924. Following is a comparison of the total number of employes exclusive of officers at the Detroit Branch: December 31, 1923 December 31, 1924 Reduction 170 156 14 Operations at Detroit Branch—Operations at the Detroit Branch in 1924 reflected continued improvement in credit conditions in the Branch territory. Aggregate of loans for 1924 was less than half that of 19*23, with but 25 per cent decrease in the volume of items handled and about the same number of banks accommodated. Gross earnings in 1924 approximated $30Q,000 less than in the preceding year as a result of smaller holdings of bills discounted bearing a lower rate; net earnings showed nearly $135,000 deficit. All departments of the Branch, with the exception of the Discount Department, showed an increase in volume over 1923. 14 HADISOH MILWAUKEE I O WA FEDERAL RESERVE BANK OF CHICAGO DIRECTORS AND OFFICERS FOR 1925 CLASS A—DIRECTORS DEPARTMENTS George M. Reynolds, Chicago, Illinois OF OPERATION Elbert L. Johnson, Waterloo, Iowa Charles H. McNider, Mason City, Iowa CLASS B—DIRECTORS James B. McDougal, Governor John H. Blair, Deputy Governor Charles R. McKay, Deputy Governor August H. Vogel, Milwaukee, WisLOANS AND CREDITS consin Kent C. Childs, Controller of Loans Robert Mueller, Decatur, Illinois and Credits Stanford T. Crapo, Detroit, Michigan Allen R. LeRoy, Manager, Loans CLASS C—DIRECTORS Ralph H. Buss, Manager, Loans and William A. Heath, Evanston, Illinois Discount Department James Simpson, Chicago, Illinois Eugene A. Delaney, Manager, Credit Frank C. Ball, Muncie, Indiana Department OFFICERS Joseph C. Callahan, Manager, MemWilliam A. Heath, Chairman and ber Bank Accounts Department Federal Reserve Agent INVESTMENTS James Simpson, Deputy Chairman Clarke Washburne, Controller of InWalter F. McLallen, Secretary vestments DIVISION OF ISSUE Alba W. Dazey, Manager, Investment Department Walter F. McLallen, Assistant Federal Reserve Agent CASH AND CUSTODIES DIVISION OF EXAMINATIONS Otto J. Netterstrom, Controller of Cash and Custodies William H. White, Assistant Federal Jesse G. Roberts, Manager, Cash Reserve Agent, Manager Department DIVISION OF BANK RELATIONS Robert E. Coulter, Manager, Cash Everett L. Harris, Manager Custody Department DIVISION OF RESEARCH AND Fred Bateman, Manager, Securities STATISTICS Department Frank M. Huston, Manager DIVISION OF AUDIT Francis R. Burgess, Auditor Walter A. Hopkins, Assistant Auditor COUNSEL Charles L. Powell MEMBER FEDERAL ADVISORY COUNCIL Frank O. Wetmore, Chicago, Illinois DETROIT BRANCH DIRECTORS George B. M'orley Tulius Haass Charles H. Hodges N. P. Hull Harry H. Bassett John W. Staley William R. Cation OFFICERS John G. Baskin, Assistant Federal Reserve Agent George T. Jarvis, Assistant Auditor William R. Cation, Manager John B. Dew, Cashier Herbert H. Gardner, Assistant Cashier Harlan J. Chalfont, Assistant Cashier Henry M. Butzel, Assistant Counsel COLLECTIONS William C. Bachman, Controller of Collections Irving Fischer, Manager, Check Department Louis G. Pavey, Manager, Collection Department ADMINISTRATION James H. Dillard, Controller of Administration Robert. J. Hargreaves, Manager, Personnel Department. Louis G. Meyer, Manager, Service Department Frank A. Lindsten, Manager, Disbursing Department Richard C. Huelsman, Manager, Planning Department FISCAL AGENCY Don A. Jones, Controller of Fiscal Agency Functions John H. Rumbaugh, Manager, Government Bond Department